Porr AG · VIE:POS
Porr — H1 2016 Earnings Presentation
35 slides from Porr's earnings presentation, Nov 16, 2016
Slide 1: PORR AG H1 2016 Investor Presentation
PORR AG H1 2016 NEW BUILDING 1H 2016 of PORR AG Investor Presentation November 2016 Investor Presentation August 2016
Slide 2: Disclaimer
Disclaimer • This presentation was prepared by PORR AG (the "Company") solely for use at investors’ meetings and is provided solely for informational purposes. • This presentation dates from November 2016. The facts and information contained herein might be subject to revision in the future. Neither
Slide 3: Highlights
01 HIGHLIGHTS Investor Presentation ● November 2016 ● Page 3
Slide 4: Strong First Half Year: Solid Performance of Home Markets
Strong First Half Year: Solid Performance of Home Markets +11% Continued growth in production output 88% +13.5% of production output Full order book of generated in strong EUR 5.5bn home markets Investor Presentation ● November 2016 ● Page 4
Slide 5: Healthy Balance Sheet – High Liquidity
Healthy Balance Sheet – High Liquidity Healthy Balance Sheet – High Liquidity Solid balance sheet enables operational and investment flexibility EBT +25% EUR 124m increased operational of net debt – improved by performance through EUR 181m compared effective cost management to H1/2015 Investor Prese
Slide 6: Key Figures H1 2016
Key Figures H1 2016 EUR m H1 15 H1 16 Change2 Production output1 1,497 1,663 +11.1% Order intake 2,269 2,564 +13.0% Order backlog 4,830 5,481 +13.5% Revenues 1,321 1,509 +14.2% EBITDA 56 68 +22.2% EBITDA3 % 3.7 4.1 EBT 17 21 +25.1% EBT3 % 1.1 1.3 Periodic result 11 16 +50.2% Earnings per share 0.33
Slide 7: Consistent, Successful Strategy Focus
Consistent, Successful Strategy Focus 1 Stable and consistent growth in home markets Strong geographical footprint supported by technical excellence Value over volume 2 Strong focus on projects adding most value 3 Solid balance sheet Improved efficiency and cash generation Creating value through str
Slide 8: A New Consistent and Lean Organisational Structure
A New Consistent and Lean Organisational Structure PORR AG PDE PORR Bau GmbH PES BU 1 – A/CH/CZ BU 2 – Germany BU 3 – International BU 4 – Environmental Engineering, Healthcare & Services Austria Germany Poland Switzerland Nordic (NOR, SWE, DEN) Czech Republic Qatar Slovakia Romania / Bulgaria Home
Slide 9: Markets & Strategy
02 MARKETS & STRATEGY Investor Presentation ● November 2016 ● Page 9
Slide 10: PORR Strategy – Intelligent Growth
PORR Strategy – Intelligent Growth MARKETS OPERATIONS Leading role in home markets 3 % EBT margin Profitable project markets Net-debt-free Focus on earnings, not revenues Promising target markets Strict cost & risk management TECHNOLOGY & CULTURE INNOVATION Best place to work Leading role in innovat
Slide 11: Strategic Achievements
Strategic Achievements MARKETS OPERATIONS • Leading market position in Austria • Clear roadmap of sustainable margin • Solid growth in Germany, strong improvements leading to an EBT presence in complex infrastructure margin of 2.3% in 2015 (1.9% FY 14) projects • Net cash increased to EUR 187m •
Slide 12: PORR Construction Markets Show Stable Growth Prospects
PORR Construction Markets Show Stable Growth Prospects Market Volume & Approach EUR 1,442bn Home markets Total construction • Well-established with a strong profile in volume in Europe its home markets • Detailed knowledge about the markets, competitors and clients • Great depth of added value / nea
Slide 13: A Stable Business Supported by a Full Order Pipeline
A Stable Business Supported by a Full Order Pipeline PORR Markets – focused business model Order backlog by region, EUR m 86 AT 397 DE 593 1,440 1,670 PL 77% CH 1,294 CZ 1,452 Production output by region, EUR m 18.7 28.8 37.3 6271 AT 93 DE 149.6 88%317.8 PL 149.6 348 Full-service markets 884 CH Proj
Slide 14: Year 2016: Challenges
Year 2016: Challenges Importance BIM Better construction materials Lack of specialists Virtual project spaces high Apps from SHA to MFD Smart Home SHA Energy efficiency Green Modular construction/ Nano in building temporary building 3D-Print construction Micro apartments Urban Mining Focus on core b
Slide 15: Market Trends and Drivers in the Construction Industry
Market Trends and Drivers in the Construction Industry Demographic factors / Urbanisation Consolidation / Anticipating Tomorrow • Urbanisation – the future of cities - drives the • Strengthening core and/or further diversifying need for building infrastructure such as through small and mid-cap compa
Slide 16: Digitalisation and Construction – Achieving Long-Term Added Value
Digitalisation and Construction – Achieving Long-Term Added Value • Digitalisation of internal organizational workflows (e-billing, e-commerce, standardized workflows): • helps to manage and utilize all kinds of information • provides new opportunities to be PORR with a leading leaner and faster rol
Slide 17: Roadmap 2020: Digitalisation and Construction
Roadmap 2020: Digitalisation and Construction Control and steering mechanisms Change of market situation after digitalisation of construction industry Investor Presentation ● November 2016 ● Page 17
Slide 18: Operational Performance
03 OPERATIONAL PERFORMANCE Investor Presentation ● November 2016 ● Page 18
Slide 19: Increased Production Output and Strong Order Intake
Increased Production Output and Strong Order Intake …% share of production output Business Units* 1 A/CH/CZ 53% 2 Germany 12% 3 International 28% 4 Environmental 6% Engineering, Health- care & Services 1,242 1,304 783 887 704 732 463 462 193 223 299 75 94 102 159 174 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
Slide 20: Solid Order Backlog: Increase of 13.5%
Solid Order Backlog: Increase of 13.5% Order backlog and TOP 15 projects in H1 2016 (EUR m) Selected projects Country EUR m1 Entry POC Metro Doha "Green Line" QA 944 Jun-13 56.8% Bratislava road D4-R7 SK 300 Jun-16 0.0% KAT 3 Koralm tunnel AT 297 Jun-13 34.4% "Stuttgart 21" Filder tunnel DE 266 Jul-
Slide 21: Order Intake With a Balanced Project Size
Order Intake With a Balanced Project Size Order intake and TOP 12 projects in H1 2016 (EUR m) Selected projects Country EUR m1 Entry Bratislava road D4-R7 SK 300 Jun-16 Al Wakrah Stadium QA 202 Feb-16 Europaallee ZH Lot F CH 130 Feb-16 Order Intake Expressway S 6 Koszalin PL 99 Mar-16 +296 (+13.0%)
Slide 22: Comprehensive Control and Steering Mechanisms Established
Comprehensive Control and Steering Mechanisms Established Control and steering mechanisms Control and steering mechanisms Investor Presentation ● November 2016 ● Page 22
Slide 23: Comprehensive Control and Steering Mechanisms Established
Comprehensive Control and Steering Mechanisms Established Control and steering mechanisms Control and steering mechanisms Tender Project risk management • Established detailed directives and checklists for • Regular risk review committee meetings to risk recognition (contract, client, etc.) discuss
Slide 24: Financial Section
04 FINANCIAL SECTION Investor Presentation ● November 2016 ● Page 24
Slide 25: Consolidated Income Statement
Consolidated Income Statement EUR thd 2014 2015 H1 2015 H1 2016 ∆% Production output1 3,474,885 3,523,752 1,497,044 1,662,789 +11.1% Revenues 3,009,118 3,139,687 1,321,355 1,509,243 +14.2% Material costs + Purchased s. -2,026,001 -2,060,827 -849,248 -966,570 +13.8% - Material costs -680,195 -651,443
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet EUR thd 31.12.2014 30.06.2015 31.12.2015 30.06.2016 Long-term 728,013 782,653 715,871 743,282 assets Assets Short-term 1,418,017 1,152,022 1,588,126 1,429,123 assets Total assets 2,146,030 1,934,675 2,303,997 2,172,405 Equity (incl. 385,171 369,966 412,118 382,489 non- con
Slide 27: Strong Liquidity and Well-Balanced Financial Liabilities Profile
Strong Liquidity and Well-Balanced Financial Liabilities Profile 1 167 15 82 95 6 83 70 23 9 21 72 48 28 55 46 17 21 4 11 12 7 7 7 13 4 2016 2017 2018 2019 2020 from 2021 Term loans Bonds SSD fix SSD Floating Finance lease constr. machinery 1 Maturity profile of PORR’s financial liabilities as of 30
Slide 28: Maturity Profile 30.06.2016 vs. 12.08.2016
Maturity Profile 30.06.2016 vs. 12.08.2016 (Financial lease contracts esp. for construction machines excluded) EUR m 160 140 120 Extension of average portfolio maturity to 100 3.5 years! 80 60 40 20 0 2016 2017 2018 2019 2020 2021 2022 2023 >2023 30.06.2016 12.08.2016 Investor Presentation ● Novembe
Slide 29: Key Takeaways
05 KEY TAKEAWAYS Investor Presentation ● November 2016 ● Page 29
Slide 30: A Step Ahead: Key Strategic Priorities 2016
A Step Ahead: Key Strategic Priorities 2016 Continued focus on home markets 1 Growth potential especially in Germany, Poland, Czech Republic and Switzerland Exploiting new growth opportunities via export products 2 New project markets like UK and Norway as well as new target markets like Sweden in t
Slide 31: IR Information for PORR AG
IR Information for PORR AG Share Information Financial Calendar 2016 1 Share price EUR 35.72 29.11.2016 Q3 2016 Market capitalisation EUR 1,039.3m Official market Vienna Stock Exchange Prime Market Number of shares 29,095,000 outstanding Research Reports Ticker symbol POS VI Berenberg Bank ISIN AT00
Slide 32: Back Up
06 BACK UP Investor Presentation ● November 2016 ● Page 32
Slide 33: PORR Increased Ordinary Dividend and Offered Extraordinary Scrip Dividend (FY 2015)
PORR Increased Ordinary Dividend and Offered an Additional Extraordinary Scrip Dividend (FY 2015) Dividend The way a scrip dividend works Result •PORR proposed an ordinary • Shareholders had the option of •A subscription period of dividend of EUR 1.00 as a reinvesting the EUR 0.50 two weeks commen
Slide 34: Scrip Dividend: What Happened From an Investor's Point of View?
Scrip Dividend1: What Happened From an Investor’s Point of View? Options for the Investor Option 1 Option 2 EUR 1.00 in cash EUR 1.00 in cash + + EUR 0.50 in cash EUR 0.50 in shares or = = EUR 1.50 in cash EUR 1.50 in cash & shares 1 Taxation of the total dividend of EUR 1.50 can be settled from the
Slide 35: Sustainable Dividend Policy
Sustainable Dividend Policy Dividends Dividend per share1 (in EUR) 0.50 0.75 0.50 1.00 0.16 2012 2013 2014 2015 Dividend 1.66% 4.00%2 3.37%2 5.37%3 yield 1 Adjusted to share split 2015 to allow better comparison 2 Restated excl. discontinued operations 3 Dividend yield including scrip dividend Inves